Cyber insurance

Cyber insurance is a type of insurance that protects individuals and businesses from cyber attacks and data breaches that are usually attacks that cause financial losses.

Cyber-attacks are digital attacks or data breaches that overtake an individual’s secure information such as financial information, demographic information or any secure information.

As a simple example, consider you are a owner of a medical clinic. The patients provide secure information of financial data for copayments and banking information for medical services. There are over 5500 patients at this busy clinic. If there is a breach of data, this would include all the patient’s demographic and financial information. The business will have to shut operations down to ensure this data can be securely halted.

This will result in business operation interruption. The cyber insurance policies may offer coverage for business interruption losses to help business recover revenue while they had to interrupt daily patient care for their business.

On the other hand, the individuals whose information was affected can also face financial loss from fraudulent transactions made from compromised payment information.

Sometimes cyber extortion from hackers threatening to release sensitive information or disrupt operations unless a ransom is paid. Cyber insurance can help in all these scenarios and can help cover the ransom payment and expenses while negotiating to the extortionists.

Cyber insurance can also be included to cover for legal expenses that are related to cyber incidents. It can also cover expenses to hire forensics to investigate and mitigate reputational damage and restore trust with customers.

Cyber insurance provides critical financial protection against the growing threat in todays digital world. This insurance is an essential risk management tool for businesses and individuals to safeguard their finances and reputation.

For more information to see how you can obtain information or add cyber insurance to your policy, contact Karstens Financial today and talk to Jake at 855-657-8400.